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Indonesia Tax Service
The business and Indonesia tax landscapes have changed dramatically, and the pace and complexity of change continues to increase.
We’ll help you navigate the global tax landscape
The business and tax landscapes have changed dramatically, and the pace and complexity of change continues to increase. We can help you navigate this shifting landscape. Governments are tempering the need for revenue with increased competition for labor and capital. Tax authorities are adapting their enforcement strategies, focus and policies in response to the changing dynamics of business. Companies are balancing competing priorities, ensuring they maintain compliance while adding value. We can assist you with these critical issues in today's tax environment, including:
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Tax library
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We are excited to share our latest Tax Alert, which addresses the issuance of new payroll-related regulations concerning the relief provided on tax and social security for workers in certain industries. |
25 March 2025 |
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On 31 December 2024, Indonesia issued Implementing Regulations on Global Minimum tax under BEPS 2.0 Pillar Two, which includes Income Inclusion Rules, Domestic Top-up Tax, and Undertaxed Payment Rules. The regulation is effective for fiscal years beginning on or after 1 January 2025. There will be obligations to submit a Top-up Tax Return for GloBE, DMTT, and/or UTPR, a GloBE Information Return (GIR), and a Notification. |
04 Jan 2025 |
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On 31 December 2024, Indonesia Minister of Finance (MoF) issued Regulation No 131/ 2024 (“PMK-131”) in relation to New VAT Treatment. PMK-131 is the implementing regulation of Article 8A of Law No 8/1983 (VAT Law) which was last amended by Law No. 6/2023. PMK-131 is effective on 1 January 2025. |
29 May 2024 |
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The Indonesian Ministry of Finance recently issued PMK 172 (see link to our prior tax alert on this regulation here New Guidance on the Implementation of the Arm’s Length Principle in Indonesia | EY Indonesia Tax Alert). PMK 172 addresses a range of topics including the application of the arm’s length principle and transfer pricing documentation requirements. |
29 May 2024 |
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We are pleased to bring you our latest Tax Alert regarding the Directorate General of Taxation (“DGT”) regulation PER - 2/PJ/2024 (“PER-2”). The regulation introduces new forms and procedures for the reporting of withholding tax on payments to individuals under Article 21 and Article 26 of the Income Tax Law (“WHT21/26”). PER-2 revokes DGT regulation PER-14/PJ/2013. Some forms have been updated and a new form introduced as part of the mechanism update provided under PER-2. The changes to the forms are mainly to accommodate the change of WHT21 calculation based on the newly issued regulations, i.e. Government Regulation No. 58/2023 and Minister of Finance Regulation No. 168/2023 (“PMK-168”), as well as the use of NIK as NPWP (i.e. the national ID number in lieu of tax ID number). |
5 February 2024 |
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We are pleased to bring you our latest Tax Alert regarding the Indonesian Government regulation No 58/2023 (Government Regulation 58, “GR 58”) and the related implementing regulation, i.e. Minister of Finance regulation No 168/2023 (“MoF 168”) in relation to the Tax Rate for Withholding Income tax Art 21/26 (“WHT 21”). |
26 January 2024 |
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The Indonesian Ministry of Finance has issued Minister of Finance Regulation number 172 of 2023 regarding the Implementation of the Arm’s Length Principle in transactions affected by a Special Relationship (PMK 172). PMK 172 addresses topics including application of the arm’s length principle, transfer pricing documentation requirements, Advanced Pricing Agreements (APAs) and the Mutual Agreement Procedure (MAP). PMK 172 entered into force on 29 December 2023. |
22 January 2024 |
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New regulations impacting business visitors to go into effect by 23 October 2023 |
On 22 August 2023, the Indonesian Ministry of Law and Human Rights issued Regulation Number 22 on Visas and Residence Permits, which went into effect on 24 August 2023. The government is expected to begin implementing changes pursuant to the new regulation within 60 days of the regulation going into effect (i.e., by 23 October 2023). |
17 October 2023 |
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New Golden Visa route introduced |
On 22 August 2023, the Indonesian Ministry of Law and Human Rights issued Regulation Number 22 of 2023 on Visas and Residence Permits, which went into effect on 24 August 2023. The Regulation establishes into law the new Golden Visa route, which authorizes individuals to reside in Indonesia for up to 10 years and provides them access to priority services at immigration offices, check points and related entities. Individuals who successfully apply under the Golden Visa route will be granted a Temporary Stay Visa (VITAS), Temporary (ITAS) or Permanent Stay Permit (ITAP), and Re-entry Permit under one of the four categories below. The government is expected to begin accepting applications under the Golden Visa route within 60 days of the new law going into effect (i.e., 23 October 2023). |
4 Oktober 2023 |
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New Government Regulation on Taxation of Benefits in Kind |
Tax Alert regarding Government Regulation No. 55 Year 2022 (“GR-55”) issued on 20 December 2022 as implementing regulation on the Income Tax Law, which was last amended by Law No. 7 Year 2022 (Tax Regulations Harmonization Law). One section of GR-55 provides details on new regulations regarding Benefits in Kind, which is the focus of this alert. |
12 January 2023 |
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Update on construction service regulations |
We are pleased to bring you our latest Tax Alert regarding Government Regulation No 9/ 2022 (GR-9) on the update of taxation on construction services. GR-9 is a second amendment of GR No 51/2008 (GR-51), which was previously amended by GR No 40/2009 (GR-40). GR-9 is effective on 21 February 2022. |
11 April 2022 |
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Wide ranging taxation changes in Indonesia under Tax Regulation Harmonization Law |
We are pleased to bring you our latest Tax Alert regarding Tax Regulations Harmonization Law (“HPP Law”) which become Law No.7/2021 on 29 October 2021. The changes under the HPP Law are very significant and wide-reaching. There are changes not only to administrative matters but to key aspects of the Income Tax and VAT Laws. The provisions take effect at varying times – e.g., for income tax purposes from the 2022 Fiscal Year and VAT purposes from 1 April 2022. |
1 December 2021 |
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Technical Guidance for the Implementation of Mutual Agreement Procedure |
On 10 September 2021, Directorate General of Taxation (DGT) released Circular Letter SE-49/PJ/2021 (SE-49), Technical Guidance for the Implementation of Mutual Agreement Procedure (MAP), intended to provide guidance for the DGT to follow up requests for the implementation of MAP and, as such, is largely focused on the DGT’s internal process. |
15 October 2021 |
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Reduced withholding tax rate on bond interest |
Our latest Tax Alert regarding Governor Regulation for DKI Jakarta No 60/2021 (“GR DKI - 60”) regarding 2021 fiscal incentive given for DKI Jakarta area. The purpose of GR DKI-60 is to provide economic relief to residents of DKI Jakarta who are impacted by COVID-19. GR DKI-60 is effective on 16 August 2021. |
29 September 2021 |
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2021 Fiscal Incentive for DKI Jakarta |
Tax Alert regarding Governor Regulation for DKI Jakarta No 60/2021 (“GR DKI - 60”) regarding 2021 fiscal incentive given for DKI Jakarta area. The purpose of GR DKI-60 is to provide economic relief to residents of DKI Jakarta who are impacted by COVID-19. GR DKI-60 is effective on 16 August 2021. |
31 August 2021 |
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Implementing guidelines on the investigation of COD |
Tax Alert regarding the implementing guidelines on the investigation of foreign taxpayer’s certificate of tax domicile as stated under the Director General of Taxation Circular Letter No 35/PJ/2021 issued on 31 May 2021. |
18 June 2021 |
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Tax treatments on income from the sales of Phone Credit, SIM Card, Electricity Token and Voucher |
Tax Alert regarding the release of the Minister of Finance Regulation No 6/PMK.03/2021 (“PMK-6”) regarding VAT and income tax treatments on the sales of phone credit, SIM card, electricity token (“token”), and voucher. |
16 April 2021 |
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Further extension in response to COVID19 crisis |
Tax Alert regarding the release of the Minister of Finance Regulation No 9/PMK.03/2021 (“PMK-9”). PMK-9 expands the business sectors that are eligible to obtain the COVID-19 tax incentives, and extends the tax incentives period by six months, through to 30 June 2021. |
12 April 2021 |
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Stamp duty payment, validity of stamp, and postdated stamp duty |
Tax Alert regarding the Minister of Finance regulation No 4/PMK.03/2021 (“PMK-4”) regarding stamp duty payment, validity of stamp, and postdated stamp duty. PMK-4 is the implementing regulation of the new Stamp Duty Law (i.e. Law No 10/2020). |
12 April 2021 |
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Further details released on Omnibus Law tax treatments |
Tax Alert regarding Government Regulation No 9/ 2021 (“GR-9”) and Minister of Finance regulation No. 18/PMK.03/2021 (“PMK-18”). GR-9 and PMK-18 provide some further details on income tax, VAT and general tax provisions and procedures (“KUP”) provisions under Law No. 11/2020. |
12 April 2021 |
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Indonesia notification on MLI BEPS |
Tax Alert regarding Indonesia notification on its completion of its internal procedures for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. Indonesia confirms completion of its internal procedures for the entry into effect of MLI changes for 22 tax treaties – treaty changes in effect from 1 January 2021. |
8 January 2021 |
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